CALGARY — Proponents of real estate investments planned for the Calgary area that raised more than $25 million from investors have been ordered to appear at a hearing to face fraud allegations.

On Wednesday, the Alberta Securities Commission said it had issued a notice alleging that Candice Anne Graf and Homerun International Inc. perpetrated a fraud and made misrepresentations to investors.

The ASC charges that Graf and Homerun used investor funds for purposes unrelated to the investment, which caused investors to lose their capital or increased the risk of losses. It adds that Graf and Homerun told certain investors their funds were backed by land when no such security existed.

Meanwhile, Calgary bankruptcy trustee Hardie & Kelly says on its website it was appointed as monitor of the Homerun Group in October 2012 after the companies obtained court protection under the Companies’ Creditors Arrangement Act. The site lists hundreds of investors as unsecured creditors and reports it is selling assets and distributing returns.

Kevin Meyler, senior vice-president of Hardie & Kelly, said in an e-mail the company was initially appointed to monitor 11 entities but has been discharged from two and conditionally discharged from seven, leaving just two, Homerun Capital Corp. and Homerun Equities Inc.

In its notice Wednesday, the ASC lists violations related to several real estate developments in the Calgary area.

It says that between late 2007 and April 2009, Graf and Homerun raised at least $2.4 million for a development in the Calgary neighbourhood of Rocky Ridge in exchange for promissory notes.

It adds that between 2008 and 2010, Graf and Homerun raised at least $10.4 million from about 100 investors in exchange for promissory notes to buy and develop land near Balzac.

The ASC also says that between late 2008 and June 2009, Homerun Capital and Homerun Equities collectively raised at least $2.76 million from 77 investors to purchase and eventually resell real estate properties in Alberta and that, between September 2009 and May 2012, Homerun Capital II and Homerun Equities II raised at least $6.3 million from about 250 investors.

The same parties were involved in 50/50 investments, the ASC alleges, noting it used numbered entities to raise at least $4.27 million from about 36 investors to buy, develop and sell real estate in the Upper Hillhurst or Altadore neighbourhoods — the name “50/50” was apparently based on the profits being split with the investors.

Graf, Jessica Elizabeth Bennett and various Homerun-related companies are also accused of illegally trading or distributing securities in Alberta. In a related charge, Christopher Robert Hayward is accused of acting contrary to the public interest.